Annex G
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DRAFT REVISED SCHEME OF CONTROL PROPOSED BY CLP
In pursuit of this objective
China Light recognize their continuing obligation to contribute to the
development of Hong Kong by providing substantial additional facilities
to meet the future demand for electricity.
China Light, with approval of the Government of Hong Kong, entered into
agreements with Esso in 1964 under which a generating company, Peninsula
Electric Power Company. Limited (PEPCO), jointly owned by China Light
(40%) and Esso (60%), would construct additional generating capacity.
To facilitate financing of the large new power station for which commitments
must be undertaken in the near future, China Light and Esso now plan to
establish a New Generating Company, possibly with different share ownership,
to finance, construct and own the new power station and possibly a new high
voltage transmission system. The three companies (hereinafter "the Companies")
namely, China Light, PEPCO and the New Generating Company when established,
will be subject to this Scheme of Control.
The Government of Hong Kong recognize that the Companies and their share-
holders are entitled to earn a return which is reasonable in relation to
the risks involved and the capital invested in and retained in the business.
In return, the Government of Hong Kong wish to be assured that service to
the consuming public continues to be adequate to meet demand, efficient and
of high quality, and is provided at the lowest cost which is reasonable
in light of financial and other considerations.